Building Smarter AI Apps: Prompt Engineering, RAG, and Real-Time LLM Integration

By Raj K

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In Curious About the Tech Behind Generative AI? Here’s What Developers Should Know and Advanced Generative AI for Developers: Training Dynamics, Model Fine-Tuning & Inference Optimization, we discussed neural networks, transformers, training dynamics, and model optimization. Now let’s shift gears into application development: how to get the most out of generative models without retraining them, and how to build AI-powered apps that respond in real time.

This part covers:

  • Prompt engineering (zero-shot, few-shot, chain-of-thought)
  • Retrieval-Augmented Generation (RAG)
  • Building full-stack real-time AI apps with open-source or hosted LLMs

Prompt Engineering — Getting More from LLMs Without Training

Prompt engineering is the art of crafting effective input instructions to steer an LLM toward desired output — without retraining the model.

Core Prompting Techniques

Zero-Shot Prompting

You ask the model to do something directly:

"Translate this sentence into German: I am going to the airport."

Few-Shot Prompting

You provide a few examples in the prompt:

"Translate the following:
- English: I love pizza → German: Ich liebe Pizza
- English: I am happy → German: Ich bin glücklich
- English: She is tired → German:"

Chain-of-Thought Prompting (CoT)

You encourage the model to reason step-by-step:

"Q: A train leaves at 3 PM and takes 2 hours. What time will it arrive?
Let's think step-by-step:"

Role-based Prompts

Give the model a persona:

"You are a helpful travel guide. Help a tourist plan 3 days in Mallorca."

System + User + Assistant Prompting

In structured APIs (like OpenAI’s), prompts are broken into roles:

[
  {"role": "system", "content": "You are a finance expert."},
  {"role": "user", "content": "How should I invest 10,000 euros?"},
]

Retrieval-Augmented Generation (RAG) — Inject Knowledge at Runtime

LLMs are trained on static data — they don’t “know” new or private information. RAG solves this by combining search + generation in real-time.

RAG Architecture

  1. Query → User asks a question
  2. Retriever → Search your knowledge base (docs, PDFs, databases) using vector similarity (via FAISS, Weaviate, etc.)
  3. Generator → The LLM generates an answer using both the question and retrieved documents

Vector Search Tools

  • FAISS: Facebook’s efficient similarity search library
  • Weaviate: Scalable vector DB with REST/gRPC APIs
  • ChromaDB, Qdrant, Milvus: Other great options

How to Implement RAG

  • Convert your content (PDFs, websites, CSVs) to text
  • Chunk and embed it using models like sentence-transformers or text-embedding-ada-002
  • Store embeddings in a vector DB
  • At runtime: search → retrieve → insert into prompt → call LLM

Frameworks:

Building Real-Time AI Apps with LLMs

You can build apps using either hosted APIs (like OpenAI) or open-source models (like Mistral, LLaMA 3, Falcon).

Typical Stack for AI-Powered Apps

LayerTools
FrontendReact, Next.js, Svelte
BackendFastAPI, Node.js, Django
LLM AccessOpenAI API, vLLM, LM Studio
RAG EngineLangChain, LlamaIndex
Vector StoreFAISS, Weaviate, Chroma
HostingCloudflare, AWS, Hugging Face Spaces

Hosting Open-Source Models

Use:

  • Text Generation Inference (TGI) by Hugging Face
  • vLLM for ultra-fast LLM serving
  • LM Studio for local inference

API Integration

Sample FastAPI wrapper:

@app.post("/generate")
async def generate_response(prompt: str):
    response = model.generate(prompt, max_tokens=100)
    return {"output": response}

Streaming Tokens

Use server-sent events (SSE) or WebSockets for streaming output in real-time chat apps:

  • sse-starlette (Python)
  • react-use-sse (JS)
  • WebSocket (for bi-directional comms)

Conclusion

From Prompt to Production, by now, you’ve learned how to:

  • Steer LLMs through prompt engineering
  • Expand their knowledge using retrieval-augmented generation
  • Build real-time, production-ready apps using hosted or open-source LLMs

This is the future of software: apps that think, talk, and adapt — powered by your understanding of how to mix neural networks, search, and smart prompts.

Bonus: Tools & Repos to Explore

Raj K

Meet Raj K! With over a decade of experience in tech consulting across Europe, Raj brings a wealth of expertise to this blog. Holding degrees in Metallurgy & Materials Engineering and Physics, his diverse background fuels his passion for all tech things. Raj's unique blend of technical know-how, entrepreneurial spirit, and hands-on experience makes him an invaluable asset to this blog and the tech world at large.

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